Jacques Villeneuve on Friday confirmed he is working on a "F1 project".
Earlier, the 1997 World Champion and his spokeswoman declined to confirm reports he is bidding to return to the grid next year with 'Villeneuve Racing'.
"I've never made it a secret that I'm working hard on an F1 project," the 39-year-old French Canadian told BBC Sport.
"But I've not discussed the details or what my plans were and I won't be drawn on it now. I'm not commenting," said Villeneuve.
His manager, Rick Gorne, involved in the establishment of Brackley based BAR in 1999, added, "There is an element of truth in the rumours.
"F1 is a possibility -- he does have the intention to get back. It's a project we're working on."
The FIA did not comment on suggestions Villeneuve Racing is among three teams being considered for the last place in the 2011 pitlane.
F1 Needs New Approach To Team Orders: Horner
F1 should take a new approach to team orders, Christian Horner has told a German news magazine.
Just last month, Red Bull's team boss backed the FIA's current ban by insisting that "team orders are wrong".
The Briton has now told Focus, "It is a regime that should definitely be discussed again and clarified."
After 2002, the FIA banned team orders due to the furore sparked by Rubens Barrichello reluctantly moving aside to allow his Ferrari teammate Michael Schumacher to win the Austrian Grand Prix.
In more recent weeks, Red Bull drivers Mark Webber and Sebastian Vettel collided from the lead in Turkey, before the team was embroiled in a controversy surrounding the transfer of a new wing from Webber's car to Vettel's.
Horner insists that Webber and Vettel are treated equally, but admitted that 23-year-old Vettel is obviously a longer-term prospect.
"Mark only has two, or at the most three years still in him, but in Sebastian there are ten, eleven, twelve.
"So when you talk about the future, then it is obviously Sebastian who - hopefully - will spend many years with the team," he said.
Group Seeks State Support For South African GP
Plans are afoot for a Grand Prix in South Africa.
On the day of the world cup final in Johannesburg, Bernie Ecclestone said at Silverstone last Sunday that he hopes South Africa will be on his sport's calendar "in about three years time".
The F1 Chief Executive hinted at a race in Cape Town.
In France's Auto Hebdo this week, it emerged that a consortium has presented to president Jacob Zuma a request for EUR7.5 million in assistance to build a circuit, and 5m per year for an eight-year F1 promotion contract.
George Nyabadza, boss of Motorsport South Africa (MSA), said one condition of his support for F1's return to the country would be the involvement of his countrymen.
"F1 enjoys very little support in countries where there is no representation," he is quoted by supersport.com.
Nyabadza also said money would have to be generated for motor sport development for females and black youth, insisting that without this "there would be no legacy for the sport".
And managing director Francois Pretorius said the MSA would only support a Grand Prix bid if it benefited grassroots motor sport in South Africa.